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Published 05.21.2020
QUESTION #1
The CARES Act excludes from the definition of payroll costs any employee compensation in excess of an annual salary of $100,000. Does the exclusion apply to all employee benefits of monetary value?
ANSWER
No. The exclusion of compensation in excess of $100,000 annually applies only to cash compensation, not to non-cash benefits, including:
Employer contributions to defined-benefit or defined-contribution retirement plans;
Payment for the provision of employee benefits consisting of group health care coverage, including insurance premiums; and
Payment of state and local taxes assessed on compensation of employees.
